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NJ psychiatrist admits to trading prescriptions for sex, US Attorney says

According to court documents and statements made in court, Morelli admitted having sexual relationships with some patients and, in some cases, exchanging prescriptions for sexual activity, images or videos.

Derek Callahan

Jun 25, 2026, 2:42 PM

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A Cape May County psychiatrist has pleaded guilty to 17 felony counts of unlawfully prescribing controlled substances, admitting he wrote invalid prescriptions for patients that included sexual partners, known drug addicts and others without a legitimate medical purpose, federal prosecutors said Wednesday.

Louis Morelli, 73, of Cape May County, pleaded guilty in U.S. District Court to 17 counts of causing prescription drugs to be dispensed without valid prescriptions with the intent to defraud and mislead, according to the U.S. Attorney's Office.

Prosecutors said Morelli, who operated a psychiatry practice in Smithville, unlawfully prescribed Adderall, Vyvanse and Xanax to 17 patients over several years. Authorities said he admitted issuing prescriptions outside the usual course of professional practice and without medical necessity, misleading pharmacies, insurers and government benefit programs.

According to court documents and statements made in court, Morelli admitted having sexual relationships with some patients and, in some cases, exchanging prescriptions for sexual activity, images or videos. Prosecutors said he also continued prescribing controlled substances to patients with known histories of addiction and overdose, including after receiving warnings from family members and law enforcement about drug abuse and diversion.

Morelli further admitted that at least one unlawful prescription involved a conscious or reckless risk of death or serious injury, and that at least one prescription resulted in death or serious bodily injury.

Morelli surrendered his Drug Enforcement Administration registration and agreed to immediately relinquish his licenses to practice medicine and psychiatry. He is scheduled to be sentenced on Oct. 27.

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